A family spends 20% of its monthly income on food, 23% on rent, and 42% on other expenses and saves the balance. If the family saves \(\$360\) per month, what is its monthly income?
Explanation
Explanation of Answer:
Expenditures: 20% + 23% + 42% = 85%
Savings: 100% — 85% = 15%
Let x = family’s monthly income. Then \(0.15 x=360, x=360 / 0.15=\$ 2,400\)